SNB’s Maechler: EUR/CHF – 1.05 is not the new informal limit

Swiss newspaper Neue Zuercher Zeitung reports comments from the Swiss National Bank (SNB) Governing Board member Andrea Maechler delivered in an interview on Saturday.

Key quotes

“The SNB is intervening on the foreign exchange market because in this crisis the Swiss franc has once again become a safe haven and the appreciation pressure has increased significantly.”

“The strengthening would be much more pronounced if we had not been prepared to intervene more. At present, all safe haven currencies are under pressure to appreciate, alongside the franc, the dollar and the yen.”

“Our interventions are currently necessary to keep further damage away from the Swiss economy.”

As the EUR/CHF cross reached the 1.0500 level last week, Maechler was asked, "Is the SNB currently establishing a new informal minimum rate?"

He replied: “No. We look at the entire currency situation. Of course, the euro exchange rate is important due to the close trade relationship with Europe. We also take the other currencies into account.”